About Child Support

Jim Moeller, representing Washington's 49th District, which encompasses the Vancouver area, has filed advance bill HB 1027.   Titled "An Act Relating to implementing changes to child support based on the child support schedule work group report" perhaps this bill will fare better than last session's attempt.

Speaking of child support, presently RCW 19.071(5) allows for a deduction of up to $5,000 annually in the support worksheets for voluntary retirement contributions actually made.    The specific wording is as follows:

Determination of net income:  The following expenses shall be disclosed and deducted from gross monthly income to calculate net monthly income:  federal and state income taxes (see the following paragraph); federal insurance contributions act deductions (FICA); mandatory pension plan payments; mandatory union or professional dues; state industrial insurance premiums; court-ordered maintenance to the extent actually paid; up to five thousand dollars per year in voluntary  retirement contributions actually made if the contributions show a pattern of contributions during the one-year period preceding the action establishing the child support order unless there is a determination that the contributions were made for the purpose of reducing child support; and normal business expenses and self-employment taxes for self-employed persons.  Justification shall be required for any business expense deduction about which there is a disagreement.  Items deducted from gross income shall not be a reason to deviate from the standard calculation.  RCW 26.19.071(5).

This $5,000 corresponds with the annual IRS allowance.    Beginning in 2013, however, the IRS amount is raised to $5,500.  http://www.irs.gov/uac/2013-Pension-Plan-Limitations   It'll be interesting to see if the RCW keeps pace.